The company behind several of Britain's best-known beer brands, including Black Sheep and Fourpure, is teetering on the edge of collapse after filing a notice to appoint administrators.
Brewing Giant Faces Financial Crisis
Keystone Brewing Group, which also counts Hofmeister and Purity Brewing Company among its portfolio, has taken the first formal step toward administration as it battles what industry insiders describe as a 'lethal cocktail' of financial pressures. The group, employing approximately 190 people across its breweries, filed a notice of intention to appoint FRP Advisory as administrators on Friday 28th November 2025.
This move provides the company with a critical breathing space to attempt either a restructuring deal or an outright sale of the business. The decision comes amid mounting pressure from trade creditors and follows a significant slump in sales throughout November.
Perfect Storm Hits Beer Industry
Industry sources point to a dramatic decline in consumer confidence in the run-up to Chancellor Rachel Reeves's recent Budget as a key factor in the company's troubles. The persistent speculation about potential tax hikes, even though many failed to materialise in the final budget speech, caused both trade customers and consumers to rein in their spending.
One brewing executive confirmed that this uncertainty had directly impacted orders, with pubs and retailers becoming increasingly cautious about stock levels in recent weeks.
This represents the second administration threat for the Black Sheep brand in recent years, having previously collapsed into administration in 2023 before being rescued by its current ownership. The brand was originally founded in 1992 by Paul Theakston, a member of the renowned Theakston brewing family.
Rescue Mission Under Pressure
Keystone Brewing Group is run by industry veteran Steve Cox, who joined earlier this year with an ambitious target to achieve £100 million in annual sales by 2028. The company is backed by investment firm Breal, which has poured millions into the UK brewery sector in recent years, including several rescue deals for struggling businesses.
The group's business model includes both owned brands and exclusive sales and distribution partnerships, with Hofmeister being one of the prominent brands handled under such an arrangement.
As the company races against time to secure its future, the fate of nearly 200 jobs and several iconic British beer brands hangs in the balance. Industry watchers will be closely monitoring whether Keystone can achieve the restructuring or sale needed to avoid full administration.
